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PRECIOUS-Gold inches lower on caution over U.S. stimulus bill
Published at 20/10/2020 at 02:28

Oct 20 (Reuters) - Gold prices inched lower early on Tuesday as caution set in ahead of the deadline to reach an agreement on a new U.S. coronavirus stimulus, diminishing the metal's appeal of being a hedge against inflation.

FUNDAMENTALS

* Spot gold fell 0.1% to $1,903.16 per ounce by 0055 GMT.

* U.S. gold futures were down 0.3% at $1,906.50.

* U.S. House of Representatives Speaker Nancy Pelosi and Treasury Secretary Steve Mnuchin "continued to narrow their differences" about a fresh aid package, Pelosi's spokesman, Drew Hammill, wrote on Twitter.

* Pelosi hopes that by the end of Tuesday there will be "clarity" on whether a coronavirus stimulus bill can be passed before the Nov. 3 elections, Hammill wrote.

* The U.S. economy is rebounding strongly after taking a big hit because of the pandemic, but it may be another year before the economy returns to pre-crisis levels and take even longer for the labor market to recoup lost ground, Federal Reserve Vice Chair Richard Clarida said on Monday.

* Britain sees no basis to resume trade talks with the European Union unless there is a fundamental change in approach from Brussels, chief negotiator David Frost said, dashing earlier optimism that negotiations could resume.

* The European Central Bank will maintain an accommodative policy in response to the ongoing coronavirus crisis, ECB President Christine Lagarde said.

* The dollar index was steady against rivals, while Asian stocks came under pressure.

* SPDR Gold Trust , the world's largest gold-backed exchange-traded fund, said its holdings rose 0.02% to 1,272.85 tonnes on Monday from 1,272.56 tonnes on Friday.

* Silver fell 0.3% to $24.43 per ounce, platinum

and palladium were 0.1% higher at $856.85 and $2,345.37, respectively.

DATA/EVENTS (GMT)

1230 US Housing Starts Number Sept

(Reporting by Eileen Soreng in Bengaluru; editing by Uttaresh.V)

((eileen.soreng@thomsonreuters.com; Within U.S. +1 646 223 8780, Outside U.S. +91 80 6749 6131; Reuters Messaging: eileen.soreng.thomsonreuters.com@reuters.net))